Quote:
Originally Posted by Jedi Ninja
Both Social Security and Medicare, according to the Trustee's own report.
http://www.ssa.gov/oact/trsum/index.html
Projected long-run program costs for both Medicare and Social Security are not sustainable under currently scheduled financing, and will require legislative corrections if disruptive consequences for beneficiaries and taxpayers are to be avoided. |
Yes, even the politicos know the current system is untenable. They will do a combination of raising the age to qualify, raise the FICA tax, and "reform" the current system.
A relatively simple fix that would help in my view is to remove or adjust the cap on FICA (payroll) tax (the 6.2% from employee contributions) upward.
In 2011, the FICA tax is applied to the first ~$105K of income so essentially any income over that amount is payroll tax free. So those who make under that amount essentially subsidize those whose income is greater than the cap.
Obama proposed something similiar that higher income individuals have a higher threshold on their FICA cap ie. first $130K of W2 income (?).
But of course, that goes to taxing the "middle class" that many don't espouse. As a wage slave myself, I'd be willing to pay more but that is me.